Israeli billionaire philanthropist Idan Ofer has emerged as the latest big name backer of UK listed green fueltech business Sulnox,
Ofer has announced a partnership and investment with Sulnox through his Eastern Pacific Shipping (EPS) operation and EPS Ventures.
Sulnox, led by CEO Ben Richardson, a former senior Deutsche Bank executive, has in the last few months raced to a £117m market cap on modest revenue, boosted by a growing list of shipping related investors including Contantine Logothetis, Norway’s Nistad, McQilling of the US, and Greenbull, co-founded by former Vitol star trader Nick Mahoney.
The company’s organic fuel additive is gaining traction in shipping, mining and other heavy industries under pressure to cut emissions, meet regulatory targets and reduce fuel consumption. Major maritime operators Teekay, Spring Marine and Marfin have been early users, attracted by a zero-capex, immediate transition solution while longer term green solutions are explored.
On land, a key generator trial recently showed fuel consumption lowered by 15%, while emissions were slashed.
The EPS deal, which also includes a product order, is the most significant step in globalising Sulnox’s commercial reach to match its large patent portfolio covering all major markets.
EPS, one of the world’s largest privately-owned shipping companies, is acquiring a significant stake in SulNOx. The investment is part of a broader landmark agreement, which also includes a major product supply contract between the two companies.
Following an extensive eight-month successful evaluation spanning multiple vessels including container ships, tankers, bulkers and vehicle carriers, EPS will initially adopt SulNOxEcoTM Fuel Conditioner on a minimum of 30 vessels out of its 300-strong fleet, while concurrently committing to introduce SulNOx to some of the world’s largest shipping companies. The evaluation demonstrated significant fuel savings of up to 5% with Heavy Sulphur Fuel Oil (HSFO) and also B30 biofuel, in line with typical average fuel savings observed with other marine clients and fuel types.
EPS’s affiliate, EPS Ventures (EPSV) will invest in a stake of up to 8.5% in the company. A further 3.3% of SulNOx could also be issued to EPSV, linked to successful introductions by EPS to large shipping customers.
The fleet adoption highlights EPS’s stated mission to eliminate 10 million tonnes of CO2 over the life of its fleet. EPS manages vessels across four core segments: containers, dry bulk, tankers and vehicle carriers. Aggregate cargo carrying capacity is 32 million dwt. It has established itself as an industry leader in driving the Net Zero agenda, investing $2.6bn across 15 decarbonisation projects.
SulNOx Group works across all major industries to lower fuel costs, help reduce both greenhouse gas and black carbon emissions and meet sustainability targets. Its organic, biodegradable fuel conditioners improve combustion, making fuel burn cleanly and more efficiently. Increased lubricity and detergency deliver mechanical benefits, including reduced carbon deposits and cleaner components.
The company has made very significant progress in shipping, signing major clients operating bulkers, tankers, containers and cruise ships in Asia and Europe.
EPS’s partnership with SulNOx follows, within weeks, an investment by US-based shipbroker and consulting group McQuilling Partners Inc. Both new partners join the growing list of international marine industry heavy hitters and former senior commodity traders backing SulNOx after a nine-fold share price hike in 18 months.
Commenting on the EPS transaction, Ben Richardson, CEO of SulNOx, said:
“This partnership with EPS marks a transformative milestone for SulNOx. We are thrilled to see some of the industry’s largest operators adopting our unique product and contributing to our shared success. Collaborating with a partner of EPS’s scale and reputation significantly expands our revenue potential. With its strong commitment to reducing emissions and leading sustainability efforts through enhanced efficiency, EPS embodies the values we stand for. We are delighted and proud to be part of its important mission.”
Cyril Ducau, Chief Executive Officer of EPS commented:
“This partnership with SulNOx is a significant step towards achieving EPS’s long-term sustainability objectives. By enhancing our operational efficiency and reinforcing our commitment to meeting global environmental standards, this collaboration further solidifies our position as a proactive leader in sustainable shipping practices.”
Source: SulNOX
